Technicals | Aug 27 2019
By Michael Gable
On 1 August, the S&P 500 Index broke its 50-day moving average and we notified our clients on 5 August to dramatically increase cash levels by cutting back on "trading stocks" which are high beta and high in volatility. The performance of share market since then continues to confirm that we need to be patient and not rush into anything yet.
Despite that, we need to do our homework now and be ready for when we get the next "buy" signal. This week we have analysed Bapcor ((BAP)).
On the back of last week's results, BAP pushed higher on strong volume, breaking what appears to be an inverse head and shoulders pattern. It now looks probably that BAP will see higher levels over the next few months. We would be targeting $7.50 as the major line of resistance. Shorter term, any weakness should ideally be contained to the neckline near $6.40.
Fairmont Equities is a share advisory firm assisting Private Clients with the professional management of their share portfolio. We are based in the Sydney CBD but provide services to private clients across Australia. We believe that the concepts of fundamental analysis and technical analysis of stocks are not mutually exclusive. Regardless of whether you are a trader or long term investor, combining both methods is crucial to success. As a result, the unique analysis of Fairmont Equities is featured regularly in the media such as Sky News Business, CNBC, The Australian Financial Review, and the ASX newsletter. Contact us for a free trial of our research and information on our portfolio management services.
Michael is RG146 Accredited and holds the following formal qualifications:
• Bachelor of Engineering, Hons. (University of Sydney)
• Bachelor of Commerce (University of Sydney)
• Diploma of Mortgage Lending (Finsia)
• Diploma of Financial Services [Financial Planning] (Finsia)
• Completion of ASX Accredited Derivatives Adviser Levels 1 & 2
Fairmont Equities Australia (ACN 615 592 802) is a holder of an Australian Financial Services License (No. 494022). The information contained in this report is general information only and is copy write to Fairmont Equities. Fairmont Equities reserves all intellectual property rights. This report should not be interpreted as one that provides personal financial or investment advice. Any examples presented are for illustration purposes only. Past performance is not a reliable indicator of future performance. No person, persons or organisation should invest monies or take action on the reliance of the material contained in this report, but instead should satisfy themselves independently (whether by expert advice or others) of the appropriateness of any such action. Fairmont Equities, it directors and/or officers accept no responsibility for the accuracy, completeness or timeliness of the information contained in the report.
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